Key facts
- The CFTC and SEC have filed civil lawsuits against Goliath Ventures and CEO Christopher Delgado for an alleged crypto Ponzi scheme.
- The scheme allegedly defrauded investors of approximately $400 million.
- Goliath Ventures allegedly promised crypto liquidity-pool returns but instead paid earlier investors and funded the founder's luxury spending.
- Christopher Delgado has pleaded guilty to federal charges of conspiracy to commit wire fraud, wire fraud, and money laundering.
- Delgado has agreed to a settlement with the SEC that would bar him from future securities law violations.
The Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) have filed separate civil lawsuits against Goliath Ventures and its founder, Christopher Delgado, alleging a cryptocurrency Ponzi scheme that raised approximately $400 million. The CFTC stated that around 1,600 customers contributed at least $397 million for crypto trading in Bitcoin and Ether, while the SEC reported that Goliath raised at least $425 million from over 1,300 investors through an unregistered securities offering.
Regulators allege that investors were promised monthly returns of 3% to 10% from crypto liquidity pools, with principal guarantees. However, the agencies claim that funds were not invested as promised. Instead, money from new and existing investors was allegedly used to pay earlier investors, and Delgado is accused of diverting at least $51 million for personal use, including luxury spending.
In parallel proceedings, Delgado has pleaded guilty to federal charges including conspiracy to commit wire fraud, wire fraud, and money laundering. The U.S. Department of Justice stated that Delgado admitted to causing at least $250 million in investor losses and agreed to forfeit assets traceable to the scheme. The SEC noted that Delgado has agreed to a settlement, subject to court approval, which would permanently bar him from violating securities-law provisions and from associating with a broker or dealer.
The CFTC is seeking restitution for victims, disgorgement of ill-gotten gains, civil penalties, and permanent injunctions against further violations. The actions by both agencies aim to secure investor compensation and impose market bans beyond the consequences of Delgado's criminal plea.